For the second time this year, gold hit record highs, prompting local jewellers to say more buyers are shifting to lighter pieces and diamond jewellery. When markets opened on Monday, 24K gold stood at Dh539.75, after previously hitting Dh525.25 on October 21 before falling and rebounding. Prices for 22K, 21K, 18K, and 14K gold were Dh490.75, Dh470.50, Dh403.25, and Dh314.50 respectively. Spot gold traded at $4,401.05 at 10:30 am, up 1.4 per cent from Sunday. Silver also climbed, rising 2.7 per cent to reach a historic high of $69.23 earlier in the day, before settling at $69.02.
Despite the record prices, UAE customers continue to buy gold, though their purchasing habits are evolving, according to market experts. Ahmed Abdeltawab, CEO and co-founder of fractional gold purchase app O Gold, said high prices have not dampened demand but have shifted the way people invest. “Users prefer fractional purchases and regular accumulation rather than large lump-sum buys,” he said.
Jewellers have noticed a change in consumer preferences. Amina Mohamad Ali, director of MFar Jewellers, said buyers are increasingly opting for lighter pieces. “Diamond jewellery has also seen an increase in demand. The high gold prices have not really deterred people from buying. There has been an anticipation of the increase in prices, so customers have made purchase decisions independent of that,” she noted.
Record prices are also attracting new investors to the market, particularly younger buyers. Ahmed highlighted that education, accessibility, and fractional buying are key drivers bringing first-timers into gold investment. “Most UAE investors take a long-term view regarding gold. It is still seen as a store of value and hedge, especially during global uncertainty. Short-term trading increases during sharp price moves, but accumulation remains dominant,” he said.
Multiple factors are contributing to the surge in gold prices, according to Ahmad Assiri, Research Strategist at Pepperstone. He pointed to global economic uncertainty, geopolitical tensions, and fiscal challenges as factors boosting demand. Central bank purchases have also played a major role, he added, surpassing traditional considerations like interest rate expectations.
Assiri said the record highs in 2025 were not entirely unexpected. “Volatility has been a defining feature of gold this year, but the underlying trend has remained constructive. Into year-end, thin liquidity conditions can exaggerate price moves, yet gold holding above previous breakout levels points to strong underlying demand. While many expected consolidations after the October highs, fewer anticipated the speed of the subsequent rebound. The move to fresh highs appears less about short-term speculation and more about positioning ahead of the new year, with investors increasingly viewing gold as a non-negotiable holding within portfolios.”
